Village Farms International said its board approved an investment to expand the company’s cannabis cultivation capacity by converting the remaining 550,000 square feet of its Delta 2 greenhouse in Delta, British Columbia to cannabis production.
An incremental 40 metric tons of annual production capacity is expected to come online in phases, with the first planting of new grow rooms in the spring of 2026. The conversion process is expected to begin in November 2025 and will require approximately CAD $10 million in capital expenditures throughout the duration of the project, which is expected to be fully ramped by the first quarter of 2027. The project will be funded with existing cash on hand, with the majority of the capital expenditures related to the project expected to occur in calendar year 2026.
The completion of the Delta 2 greenhouse conversion will result in 2.2 million square feet of operational cannabis production, increasing production square footage by approximately 33 percent and expanding the company’s position as one of the single largest cannabis producers in the world. The company owns an incremental 2.6 million square feet of advanced greenhouse capacity through its Delta 1 greenhouse, which provides additional flexibility to continue scaling profitably with increasing global cannabis demand in the future.
